Level 2 Accounting internal assessment resource



Internal Assessment Resource

Accounting Level 2

|This resource supports assessment against: |

|Achievement Standard 91175 version 2 |

|Demonstrate understanding of accounting processing using accounting software |

|Resource title: Dolls House |

|4 credits |

|This resource: |

|Clarifies the requirements of the standard |

|Supports good assessment practice |

|Should be subjected to the school’s usual assessment quality assurance process |

|Should be modified to make the context relevant to students in their school environment and ensure that submitted |

|evidence is authentic |

|Date version published by Ministry of |February 2015 Version 2 |

|Education |To support internal assessment from 2015 |

|Quality assurance status |These materials have been quality assured by NZQA. |

| |NZQA Approved number A-A-02-2015-91175-02-5379 |

|Authenticity of evidence |Teachers must manage authenticity for any assessment from a public source, because |

| |students may have access to the assessment schedule or student exemplar material. |

| |Using this assessment resource without modification may mean that students’ work is |

| |not authentic. The teacher may need to change figures, measurements or data sources or|

| |set a different context or topic to be investigated or a different text to read or |

| |perform. |

Internal Assessment Resource

Achievement Standard Accounting 91175: Demonstrate understanding of accounting processing using accounting software

Resource reference: Accounting 2.2C v2

Resource title: Dolls House

Credits: 4

Teacher guidelines

The following guidelines are supplied to enable teachers to carry out valid and consistent assessment using this internal assessment resource.

Teachers need to be very familiar with the outcome being assessed by Achievement Standard Accounting 91175. The achievement criteria and the explanatory notes contain information, definitions, and requirements that are crucial when interpreting the standard and assessing students against it.

Context/setting

This activity requires students to demonstrate your knowledge and skills of processing financial transactions using an accounting software package to process a variety of financial information.

Conditions

The use of an accounting software package is fundamental to this activity. Teachers need to ensure that the accounting package contains a suitable chart of accounts. These are usually already provided with most standard accounting packages but it is important for teachers to ensure that it contains all the relevant accounts and is appropriate for the activity.

Similarly as this standard does not include setting up the equity transactions (including drawings, GST, banks accounts) these will need to be provided for the student, a sample set is provided in the additional information section below. The teacher will have to do these beforehand and provide these in an initial set of accounts for downloading by each individual student.

Students should also have had sufficient time to familiarise themselves with the package beforehand via the use of structured learning activities involving setting up, adjusting and processing opening balances, the chart of accounts, debtors, creditors and inventory.

Student should have access to any other appropriate material such as notes, texts and manuals.

Resource requirements

Students must use an appropriate accounting software package for this activity.

Teachers will need to ensure that the accounting package is suitably set up for the student - in particular that it contains all the relevant accounts, business information and is appropriate for the activity and available for easy downloading by each individual student. Students should also have had sufficient time to familiarise themselves with the package beforehand via the use of structured learning activities.

Additional information

Use the information below to set up the accounting package so it is ready for your students.

The trial balance figures at 1 October

Dolls House Trial Balance as at 1 October

| | | |

|Bank cheque account (your name) |5,326 | |

|Trade Debtors |200 | |

|Inventory: Inventory D401 |300 | |

|Furniture and Fittings |18,000 | |

|Trade Creditors | |400 |

|GST Collected | |688 |

|Owners Capital | |30,050 |

|Accumulated Depreciation – Furniture & Fittings | |3,000 |

|Drawings |7,000 | |

|Advertising |1,700 | |

|Rent |4,300 | |

|Cost of goods Sold: COGS D401 |42,000 | |

|Delivery Expenses |4,468 | |

|Wages |12,844 | |

|Sales: Sales D401 | |60,000 |

|Loan (8% due 2012) | |7,000 |

|Shares – Homecare Wholesale Ltd |5,000 | |

| |101,138 |101,138 |

Depreciation is charged on all items of Plant, Property and Equipment at a rate of 25%

Dolls House business details are:

|Name |Dolls House – [students name] |

|Address |80 Islington Road |

| |Napier |

|GST No |13 579 24 |

|Current Financial Year |2011 [or the current year] |

|Last Month of financial year |March |

Existing Customers, suppliers and products

|Customer Name |Address |Balance owing |

|Dolls for All |40 Devon Street |$200 |

| |TAURANGA | |

|Supplier Name |Address |Balance owing |

|Wholesale supplies |52 Mangorei Road |$400 |

| |WANGANUI | |

|Product name |Product Code |Selling Price |Cost Price |Quantity in Stock |

| | |(incl GST) |(excl GST) | |

|Classic |D401 |48 |20 |15 |

Create the following accounts for Doll’s House, ensuring that the GST code is correct:

1. Medium Term Loan

2. Inventory Loss

3. Interest on Mortgage

4. Gain on Sale on Fittings

5. Computer Equipment

6. Telephone and tolls

7. Overdue Fees Expense

8. Depreciation – Furniture and Fittings

9. Term Deposit

Internal Assessment Resource

Achievement Standard Accounting 91175: Demonstrate understanding of accounting processing using accounting software

Resource reference: Accounting 2.2C v2

Resource title: Dolls House

Credits: 4

|Achievement |Achievement with Merit |Achievement with Excellence |

|Demonstrate understanding of accounting |Demonstrate in-depth understanding of |Demonstrate comprehensive understanding of |

|processing using accounting software. |accounting processing using accounting |accounting processing using accounting |

| |software. |software. |

Student instructions

Introduction

This assessment activity requires you work independently using to process financial information for accounting systems for a company called Dolls House.

You will have hours of in-class time to complete this activity. You will use and have access to any other appropriate material such as notes, texts and manuals.

Teacher note: The context for assessment could be adjusted to incorporate relevant local situations or contexts providing evidence towards the standard. For example schools in the Hawkes Bay could use a vineyard storing and selling wine. For authenticity purposes it is strongly recommended that the nature of the business, names and amounts be changed.

You will be assessed on how accurately you process the necessary financial information and the comprehensiveness of your explanation of operating accounting systems.

Task

This activity involves a sole proprietor business called Dolls House owned by Moana Townsend. Dolls House specialises in selling dolls to retail stores around the North Island. Moana purchases all her stock of dolls from local manufacturers.

Dolls House is a sole proprietor business owned by Moana Davis which specialises in selling dolls to retail stores around New Zealand. Moana purchases all her stock of dolls from local manufacturers and operates a perpetual inventory system to keep track of her stock.

To date she has mainly sold the Classic doll however she is expanding and diversifying her range. She records her sales, cost of sales and inventory separately for each line of stock.

The business is registered for GST on the invoice basis.

Use the information in Student Resource A to:

• import a chart of accounts and existing business information for the organisation

• add additional information to establish customer, supplier and inventory information

• record all October transactions. You may need to create new accounts as required, in addition to those required of you

• print a transaction journal summary that shows all your transactions for the period.

Resources

Access to appropriate accounting software package, printer and paper.

See Resource A for Dolls House financial information.

Any other notes, texts and manuals as required.

Student Resource A

1. New suppliers, inventory and customers

|Supplier Name |Address |

|Top of the line supplies |285 Victoria Road, Dunedin |

|Children’s retail |18 Jasmine Road, Masterton |

| |Harrison Doll |Madonna Doll |

|Item number |D500 |D600 |

|Selling price (incl gst) |$52 |$42 |

|Selling unit |one |one |

|Unit cost (excl. gst) |$25 |$22 |

|Customer Name |Address |

|Granny Dolls |20 Hanson Street, NELSON |

|General Store |123 Ashton Road, NAPIER |

|Gifts for All |54 Parr Street, AUCKLAND |

2. During the month of October, Dolls House had the following transactions:

Dolls House is registered for GST on the invoice basis.

All figures INCLUDE GST where appropriate

|Date |Transaction |

| |Wrote cheques for the following monthly expenses: |

|October |Chq no 481 Napier District Council $240 for rates |

|2 |Chq no 482 Wages $1350 |

| |Chq no 483 The Napier Daily $160 for advertising |

|3 |Purchased 20 Harrison Dolls from Wholesale supplies (Invoice 23) |

| |Purchased 16 Madonna Dolls from Top of the line supplies (Invoice 54) |

|4 |Sold 8 Classic Dolls (Order 64) to Dolls for All |

| |Sold 5 Harrison Dolls (Order 182) to Granny Dolls |

| |Sold 3 Madonna Dolls (Order 91) to General Store |

| |Sold 3 Classic dolls for Cash |

| |Sold 2 Madonna Dolls for EFTPOS |

|6 |Dolls for All returned 2 Classic Dolls that were damaged |

| |General Store returned 1 Madonna Doll |

|8 |Sent cheques to the following suppliers: |

| |Wholesale supplies $200 chq no 484 |

| |Top of the line supplies $352 chq no 485 |

|10 |Moana returned 1 Madonna Doll to Top of the line supplies |

|11 |Received cheques from the following customers: |

| |Dolls for All - $200 |

| |Christmas all year round - $260 |

| |General Store - $90 |

|12 |Paid loan instalment of $500 principal and $450 interest by automatic payment |

|15 |Sold 6 Madonna Dolls and sold 4 Harrison Dolls (order 78) to Gifts for All |

| |Banked all cash for the fortnight |

|20 |Paid the following via online banking: |

| |Telvodacom for telephone and tolls $270 |

| |Paid Business safe Insurance for 6 months insurance premium $450 |

| |Paid Gifts R Us $180 for gift wrapping supplies |

|21 |Purchased 6 Classic dolls from Children’s retail (Invoice 67) |

| |Purchased 5 Harrison Dolls from Dolland (Invoice 89) |

|22 |Purchased new computer for $3600 from Laptop Heaven (Invoice 124) on credit |

|23 |Wholesale supplies charged Moana $20 freight for an urgent delivery |

|24 |Moana had paid for a business flight to Wellington out of her personal account. This needs to be corrected. The flight |

| |cost $180 |

| |Charged by Wholesale Supplies $12 overdue fees on September’s outstanding balance |

|26 |Moana took 2 Harrison Dolls from stock for gifts for a friend who had twins |

| |Delivery Expenses of $45 were incorrectly posted to the advertising account last month |

|28 |The monthly stock take showed one Madonna Doll and 2 Classic Dolls unaccounted for – They are assumed to have been stolen|

| |and are to be written off. |

|29 |Doll’s House is selling a bookshelf that has to have $250 of depreciation closed off to the accumulated depreciation – |

| |furniture and fittings account. The bookshelf cost $2000 and had a carrying value of $500 prior to the adjustment above. |

| |The bookshelf sells for $500 cash. |

| |As part of her month end review Moana realises that $300 of Drawings has been incorrectly entered as advertising and you |

| |need to correct this. |

| |Bank all cash received for the fortnight. |

Assessment schedule: Accounting 91175 Dolls House

|Evidence/Judgements for Achievement |Evidence/Judgements for |Evidence/Judgements for |

| |Achievement with Merit |Achievement with Excellence |

|Student correctly: |Student correctly: |Student correctly: |

|sets up new inventory items and creates new accounts in the Chart of |Sets up new inventory items using separate inventory, cost of goods |Sets up three new inventory items using separate inventory, cost of |

|Accounts; |sold and sales accounts for each item |goods sold and sales accounts for each item |

|processes the majority of the following transactions using an |Creates a majority of correctly classified new accounts in the Chart |Creates nearly all correctly classified new accounts in the Chart of |

|appropriate Chart of Accounts |of Accounts except equity |Accounts for each financial element except equity |

|the cash receipts, |Correctly processes to correct accounts in the Chart of Accounts |Processes to correct accounts in the Chart of Accounts ensuring |

|cash payments, |cash receipts, |coverage of each financial element: |

|cash and/or credit sales of three different items of inventory, |cash payments, |cash receipts, |

|cash and/or credit purchases for each item of inventory |cash and/or credit sales of three different items of inventory |cash payments, cash and/or credit sales of three different items of |

|Selected appropriate accounts and has the correct amounts, including |cash and/or credit purchases for each item of inventory |inventory credit, cash and/or credit purchases for each item of |

|the amount for GST where relevant, in the correct debit/credit |A majority of the following general entries are fully correct: |inventory |

|columns for all accounts needed to process the transaction except: |drawing of goods |Nearly all of the following entries are fully correct: |

|errors in figures for the cost of goods sold transfer for cash sales |inventory shortage/loss |drawing of goods |

|entries are allowed if the student has incorrectly included GST in |purchase of an item of PPE on credit |inventory shortage/loss |

|the setup of inventory |sundry charges by a supplier |purchase of an item of PPE on credit |

|errors in figures for purchases or purchase returns where the student|correction of a non-GST error |sundry charges by a supplier |

|has incorrectly set up the inventory with the GST inclusive cost |Inventory returns to supplier |correction of a non-GST error |

|instead of the GST exclusive cost |Set up of inventory items including opening quantities should be |Inventory returns to supplier |

|The set-up of inventory does not require separate inventory, sales |correct for at least two out of three items of inventory |Processing at least two of the following complex transactions |

|and cost of goods sold accounts. |Most new accounts created should be correctly classified in the Chart|correctly: |

|Items of inventory may be identified by default general ledger |of Accounts |Transferring depreciation on PPE |

|controls or “mixed up” such as using inventory Harrison Dolls, sales |Correctly processes to correct accounts means the student has |Disposal of an item of PPE for more or less than carrying amount |

|Madonna Dolls, cost of goods sold Madonna Dolls for the Madonna |selected correct accounts and amounts, including the amount for GST |Correction of an error involving GST |

|Dolls. |where relevant, in the correct debit/credit columns for all accounts |Students need to banking any undeposited cash receipts using a |

|New general ledger accounts are not required to have been correctly |needed to process the transaction/event. |banking function or similar. |

|classified. |All accounts needed to process the transaction may require evidence |Correctly processes to correct accounts means the student has |

|Appropriate accounts means an inventory account for inventory (not a |from more than one entry depending on the software package e.g. |selected correct accounts and has the correct amounts, including the |

|different asset account such as bank); an expense account for an |Quickworks, MYOB. For example for completing a cash sale, purchase |amount for GST where relevant, in the correct debit/credit columns |

|expense; an income account for income; a PPE account for PPE etc. |return or drawings of inventory, evidence from two entries is |for all accounts needed to process nearly all of the |

|All accounts needed to process the transaction may require evidence |required in MYOB. |transactions/events |

|from more than one entry depending on the software package e.g. | |All accounts needed to process the transaction may require evidence |

|Quickworks, MYOB. For example for completing a cash sale or purchase| |from more than one entry depending on the software package e.g. |

|return, evidence from two entries is required in MYOB. | |Quickworks, MYOB. For example for completing a cash sale, purchase |

|Replacement entries can be used as evidence where the student has | |return or drawings of inventory, evidence from two entries is |

|correct entries, provided these entries are completely correct and of| |required in MYOB. |

|a similar nature to the transaction they are being used as | |A complex error is one requiring a thought process involving |

|replacement evidence for. | |calculations to determine the amounts to be debited/credited to each |

|Replacement entries (from infrequent and complex transactions) may be| |account. |

|used as evidence provided these entries are completely correct and of| | |

|a similar nature to the transaction they are being used as | | |

|replacement evidence for. | | |

|An example of this is where the cash receipt from the sale of | | |

|bookshelf can inform the cash receipts criterion. | | |

Final grades will be decided using professional judgement based on a holistic examination of the evidence provided against the criteria in the Achievement Standard.

-----------------------

[pic]

-----------------------

NZQA Approved

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download